Campaigns

Labor Commits to Minimum 'Safe Pay Rates' For Uber and the Gig Economy

AFR, by David Marin-Guzman, 18 Dec 2018

Labor has committed to restore a controversial system of minimum pay and conditions for the transport industry that would extend to gig economy companies such as Uber.

The party changed its platform at the Labor national conference on Monday to say a Labor government will "urgently" set up an independent body to establish pay and conditions for all transport industry drivers and operators, which would include ride sharing and on-demand transport companies.

The previous Labor government had introduced the Road Safety and Remuneration Tribunal to set minimum rates for owner-drivers on the basis of studies that showed there was a link between safety risks and low rates of pay.

Photo: TWU national secretary Michael Kaine: "For on-demand workers the plan for safe rates means an end to exploitation and 18th-century working conditions via an app." Paul Braven

However, the Turnbull government scrapped the system in 2016 after protests from groups of owner-drivers who complained mandated rates would take away their competitive advantage.

According to the party's amendment, Labor "will, as a matter of urgency, legislate for a national system of safe rates consisting of an independent body with responsibility for safe standards of work including fair payments and conditions".

"This task has become more pressing given the emergence of new technology and the gig economy in passenger and freight transport which has accelerated the downward spiral throughout the transport industry," the amendment said.

The standards would cover "all parties in the transport supply chain and contract networks ... operators and workers, regardless of label".

"The standards will focus on eliminating economic and contractual practices that place undue pressure on transport supply chains/contract networks.

"The system would lead to a binding, enforceable and safe standards."

TWU national secretary Michael Kaine said the party platform change was an "important day for our industry" and argued drivers were under financial pressure to work long hours, speed, and skip rest breaks and vital maintenance.

"For on-demand workers the plan for safe rates means an end to exploitation and 18th-century working conditions via an app," Mr Kaine said.

"These workers, regardless of their label, will be able to seek rights and collectively agitate for conditions which will bring fairness, safety and stability to the industry."

Cameron Dunn, head of logistics business FBT Transport, said he backed the safe rates system, as well as its 30-day payment rules for customers, as he argued that good operators were being undercut by unsafe ones.

"We've been undercut by other operators – we question how they can do it, to be frank," he said.

He said the previous system "was not handled well at all" as the tribunal had moved to enforce the rates in a way that none of the parties had agreed on, including the union.

It is understood Labor and the TWU are concentrating on getting broad industry support and involvement in the safe rates, with a greater emphasis on consultation after many owner-drivers argued they had been unaware of the rates.

Some industry groups, such as the Road Transport Industrial Organisation, support the safe rates system.

However, the National Road Transport Association has opposed the safe rates system.